Yup, prices are up year over year for December at an adjusted rate of 1.6%, which seems kind of low, but it is still up from last month, which is not good (last month it was only 1.4%). Hmmm… this is not a good thing I think.
Inflation is one of those words that we older folks cringe at hearing and scares the living be-jumblies out of me, since I remember the inflation of the late 70’s and what it did to the economy. I am not saying we are heading into an inflationary spiral, yet, however, we need to watch the price index closely.
The biggest increase in our basket of goods was in the area of Shelter, or home costs. The price of homes and renovating them continues to increase, at 3.8%, and food is up 2.2% as well. Shockingly alcohol and tobacco costs are up as well (those sin taxes kicking in I guess) 3.2%.
My kids will be happy that their clothing and footwear have actually dropped in price over that period.
Our ever shrinking buck.